Understanding the factors that limit the abundance of threatened species is critical for the development of effective conservation strategies. However, gaining such knowledge from monitoring programs and using it to inform decision-making for rare species can be difficult due to methodological issues posed by the problems of distinguishing true absences from false absences and the analysis of datasets dominated by zero counts. The plains-wanderer (Pedionomus torquatus) is a critically endangered ground-nesting bird that occurs in grasslands of southeastern Australia. Decline of the plains-wanderer has been attributed to habitat modification but little emphasis has been placed on the role of introduced predators, such as the red fox (Vulpes vulpes), which have had a devastating effect on small ground-dwelling vertebrates in dryland regions of Australia. Here, we use a 9-year time series of spotlight counts to investigate the impact of vegetation structure and fox presence on plains-wanderer occupancy and abundance. We used distance sampling to determine the effective strip width for sighting plains-wanderers during spotlight surveys. We then used a hurdle model approach whereby binomial generalized additive models were fitted to presence/absence data within the effective strip-width across all sites and negative-binomial models were fitted to an index of abundance at sites where plains-wanderers were observed. Plains-wanderer occupancy and abundance fluctuated markedly through time. Where foxes were absent, occupancy (but not abundance) of plains-wanderers showed a humped relationship with grass height with an optimal height between 50 and 150 mm. Where foxes were present however, this relationship broke down and plains-wanderers were rarely recorded. Our results suggest that plains-wanderers should benefit from management strategies that maintain grass height at optimal levels and exclude foxes or effectively suppress their populations. A key message from this study is that if statistical analyses of data generated by monitoring programs for rare species are intended to inform management decisions by identifying relationships between threatened species and drivers of their abundance, there should be consideration of analytic approaches that account for true and false zeroes, high prevalence of zeroes, and the possibility of nonlinear responses.